Foreign exchange market Japan or the foreign exchange market of Japan is prospering day by day. The Japanese foreign exchange market provides tremendous support to the economy of Japan.
The official currency of Japan is the Japanese Yen or �. According to the ISO 4217 Code, the Japanese Yen is symbolized as JPY. It was introduced in Japan in the year 1871. The Yen is regarded as one of the most accepted reserve currency in the global foreign exchange market along with the U.S. dollar, Euro and Great Britain Pound Sterling (�).
The exchange rates of Yen are determined by the Bank of Japan, which is the apex bank of Japan. It also has the sole responsibility for issuing Japanese banknotes and coins in the country.
The foreign exchange rates in Japan are dependent on the exchange rate of Yen with the other foreign currencies of the world.
The foreign exchange market operations in Japan are carried out with the help of a number of banks and foreign exchange trading agencies. The Bank of Japan has taken a number of initiatives in order to stabilize the Japanese foreign exchange market.
In Japan, the floating foreign exchange rate system was introduced in the month of February 1973. After this, the Japanese foreign exchange market has undergone many ups and downs with regards to the currency exchange rates. For eliminating the negative consequences of this kind of fluctuations, the Bank of Japan has intervened multiple times so that the growth of Japanese foreign exchange market is not hindered.
Tokyo, the capital of Japan, is one of the three principal foreign exchange trading centers of the world (besides London and New York).
At present, the exchange rate between the U.S. dollar and Japanese Yen is that 1 U.S. dollar is equal to 115.86 Japanese Yen. In terms of volume of trading, the Japanese Yen constitutes a significant portion of the global foreign exchange market.
The principal objective of the Bank of Japan is to implement the foreign exchange policies and fiscal policies of Japan in such a manner so that they bring an overall stability to the foreign exchange market of Japan.